Committee recommends updated internal control manual after audit progress update

The Spring Hill Budget and Finance Committee voted to recommend an updated internal control manual to the Board of Mayor and Aldermen after a finance staff update on the city audit and policy changes.

Ms. Holden told the committee that auditors have been working through capital-asset reconciliations; she said auditors recently reported difficulty tying some capital numbers, so she spent extra time reconciling those items and expected auditors to finish before March unless additional issues arise. "They fully expect to be done before the March, barring no other speed bumps," she said.

Ms. Holden summarized the internal control manual update — roughly 40 pages — as a modernization and codification of current practices rather than a major redesign. She described the manual’s core elements as documenting separation of duties to prevent fraud, waste and abuse, cash handling procedures, payroll/time-and-attendance controls, bank access and reconciliation frequency, and clarifications on who has access to accounts. She noted org charts in the manual will show job titles (not names) to avoid constant updates.

The manual also reflects operational changes: grant administration responsibilities moved toward finance because a grant specialist was reassigned from CIP to finance. Ms. Holden said the finance office will handle fiscal oversight, reconciliations, and reporting necessary to meet grant contract terms.

After discussion and clarification about aligning policy language with the city charter and auditing compliance risks, a committee member moved to recommend the updated manual to the Board; the motion was seconded and passed 3–0.

The recommendation will now go to the Board of Mayor and Aldermen for consideration; staff also plan a fuller audit presentation at the beginning of April.